Stratulat Albulescu wins ground-breaking injunction over payment of rent in shopping center
Stratulat Albulescu has successfully represented Romanian sports retail chain Hervis Sports & Fashion S.R.L. (“Hervis”) in obtaining an unprecedented decision by the Cluj Specialised Tribunal, with the grant of an injunction for the deferred payment of part of the rent relating to premises at the Vivo Shopping Center in Cluj which is owned by commercial real estate group Immofinanz.
The Tribunal granted the request by Hervis for an interim injunction and, consequently ordered the postponement of the payment obligation for 70% of the rent, service charge and marketing costs for the month of May until the case is heard in first court proceedings.
The decision is an extremely important one as the court of law would not have granted the injunction unless it considered the claim to have the rent and other charges partially waived as having merit. This decision could give retailers the right to seek a waiver or rent reduction in court from landlords at least for the period of suspension of their businesses as a result of the COVID-19 pandemic.
The decision is the first of its kind and is thought to shift the balance of power between tenants and landlords in the Romanian retail market at a time when the COVID-19 pandemic is affecting a wide range of markets and industries.